I recently reviewed Canadian real estate metrics in Canadian home prices need to fall. The segment below reviews similar affordability deficits in US home prices.

The median US household income is $54,000, while the household income needed to qualify to buy the median US single-family home is $87,000 (up nearly 50% year over year). Real estate presently makes up some $46 trillion on US household balance sheets compared with $33 trillion before the pandemic. Notional equity is now in retreat.

It’s now hard to deny that the housing bubble 2.0 popped in 2022 as mortgage rates more than doubled. But the fallout, especially in terms of price declines, has likely only just begun. The real damage from this bubble burst should occur over the coming year. How bad is it likely to get? And where will the pain be felt most? For answers, we turn to housing analyst Nick Gerli of re: venture Consulting, who is kindly returning to the program to provide his latest outlook. Here is a direct video link.